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SAC Is Said to Plan Closing Down London Office by End of Year

Tuesday, 22 October 2013 11:47 AM

SAC Capital Advisors LP plans to shut down its London office as the $14 billion hedge-fund firm founded by Steven A. Cohen scales back in the face of insider-trading allegations by U.S. prosecutors.

SAC, headquartered in Stamford, Connecticut, will close down the U.K. office by the end of the year, President Tom Conheeney wrote in a memo sent to employees.

SAC employs more than 50 people in London, according to a person with direct knowledge of the matter. The firm this week cut six investment professionals in the U.S., Conheeney wrote.

“As our negotiations with the government have unfolded, it has become clear to us that the outcome the government is demanding is likely to have a greater than first anticipated impact on the firm,” Conheeney wrote.

“We have concluded that we must operate as a simpler firm and reduce our capital allocations.”

Money managers have been leaving SAC’s U.K. office after a U.S. grand jury indicted the firm in July on allegations that it engaged in unprecedented illegal trading for more than a decade, prompting clients to pull almost all outside cash.

Cohen, whose 21-year-old firm is negotiating a settlement with the government, is likely to be barred from managing other peoples’ money and pay a fine of $1.8 billion, people familiar with the mater said this month.

Jonathan Gasthalter, a spokesman for SAC, wasn’t immediately available to comment on the closing of the London office and the U.S. job cuts.

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SAC Capital Advisors LP plans to shut down its London office as the $14 billion hedge-fund firm founded by Steven A. Cohen scales back in the face of insider-trading allegations by U.S. prosecutors.
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Tuesday, 22 October 2013 11:47 AM
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